Latin America, the traditional poster child for political risk in financial markets, is back as a source of concern for investors.
Chilean President Sebastian Pinera on Saturday became the second leader this month to declare a state of emergency, his hand forced by violent protests in South America’s wealthiest country after an increase in transportation costs. In Ecuador, unrest blew up after President Lenin Moreno ended fuel subsidies.
Argentina, meanwhile, is back in the grip of capital controls after voters revolted against President Mauricio Macri’s budget-cutting agenda and handed his opponents a commanding lead ahead of presidential elections on Oct. 27.
The upshot is that Latin Americans are yet again rejecting austerity sought by investors and the likes of the International Monetary Fund, arguing it does little to reduce income inequality or improve social services.
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WNU Editor: Almost every country in Latin America is facing some crisis or another. The countries that are on my radar are the following .... Venezuela with its political and economic collapse. Mexico's horrific murder rate and drug wars. Central America's criminal gangs and poor economic conditions. Colombia's never ending war against groups like FARC and ELN. Ecuador, Chile, Argentina, and Brazil facing economic hard times.
